The head of the Federal Reserve Jerome Powell will testify on the Semiannual Monetary Policy Report on Tuesday and Wednesday
Evergreen buck consolidates in Asia
On Thursday, the evergreen buck consolidated in Asia having recovered from a brief spill overnight when financial markets were puzzled by mixed messages on policy from the US major financial institution.
Trading ranges turned out to be tight once again, with both China and Japan on holiday and also a bit in the way of key economic reports in the diary.
The major US currency had taken an initial knock from a shockingly steep rebound in the ISM index of manufacturing to about 52.8 that overshadowed a firm ADP report on hiring.
It headed south further when the major US bank had its inflation outlook downgraded and also made a technical cut to rates on excess reserves.
However, it changed when Fed Chair Jerome Powell told that the factors influencing inflation might be transitory and he didn’t see any case for a rate move in any direction.
The net outcome was a rebound in the USD index versus a group of currencies, leaving it at 97.606 in contrast with Wednesday’s minimum of 97.149.
The common currency showed $1.1207, having hit $1.1265 overnight. Meanwhile, the evergreen buck stabilized at 111.54 yen from a minimum of 111.03.
As for bonds, they see-sawed with the two-year gain first decreasing to a one-month dip of 2.206%, concluding Wednesday’s trading marathon just 4 basis points higher reaching 2.31%.
The UK pound happened to be one of the few currencies to buck the evergreen buck, hitting a two-week maximum on Wednesday on rumors that Brexit negotiations between the UK cabinet and the key opposition party were demonstrating some progress.
Eventually, the UK currency was last at $1.3054, having hit $1.3101 overnight.
The United States will publish the non-farm employment change, also known as non-farm payrolls (NFP) at 15:30 MT time on February 7.
The level of non-manufacturing PMI for the United States by the Institute of Supply Management will be published at 17:00 MT time on February 5.
The Federal Open Market Committee will publish its meeting minutes on February 19, at 21:00 MT time.
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